Argentine deputy minister tries to calm rumors of peso devaluation

Argentina’s Deputy Economy Minister Gabriel Rubinstein shared an audio with some economists to “calm down the situation” caused by the leak of an alleged economic plan that predicted a devaluation of 50% of the official exchange rate of the peso in relation to the dollar, official sources said this Monday.

The clarification of the Secretary of Economic Programming, Gabriel Rubinstein, who took office a week ago, after having been questioned in the ruling coalition for criticism he made on Twitter of Argentine Vice President Cristina Kirchner, was given after an alleged official plan was published on Sunday by the portal “El Cohete a la Luna”, a vehicle considered to be sympathizing with the ruling party.

The supposed plan provides for a reduction in the difference between the official and parallel exchange rates — from the current 111% to 30% — and recommends a devaluation of the official rate, “close to 50%”, raising it from the current 138, 3 pesos in the market until for 200 pesos and leaving it fixed until March 2023.

In the audio, released by the Argentine press, Rubinstein assures economists that he there will be devaluation, “at least not this Thursday”, and that his plans “have nothing to do with an imminent devaluation”.

Rubinstein released the audio to some economists so that “they don’t caught on the wave of rumours”, and described the leak as “an operation”.

A spokesperson for Rubinstein also confirmed that he will travel to Washington for a “technical trip” before the Minister of Economy, Sergio Massa, who is due to leave for the United States on September 6 to meet, among others, the managing director of the International Monetary Fund (IMF), Kristalina Georgieva.

Argentina lives a fragile economic situation, with year-on-year inflation of 71% measured in July, a shortage of international reserves and a fiscal deficit largely financed by issuance monetary policy, having closed access to international credit and facing difficulties in obtaining financing in the domestic market. In addition, it signed a program with the IMF to improve the payment conditions of a debt of US$ 45 billion with the institution.

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